What is the vertical market?

vertical markets are one of the forms of a specialized market. Basically, the vertical market consists of a sub -group of sellers and customers who make transactions based on specific needs. In general, the vertical market will appear as a small group in a larger industrial environment, while the supplier provides products and services directly related to the customer that is considered to be part of the same industry.

The vertical market differs from the horizontal market in one key aspect. While the vertical market is engaged in specific needs associated with the market sector, the horizontal market will have a wider attraction. Products and services offered on the horizontal market will still be useful to the customer but much less specialized. This allows sellers on horizontal markets to sell the same goods to businesses dealing with a number of different industries.

One of the easiest ways to understand the vertical market is to look at the situation to the situationA polling of the industry and notes where the customer and the seller deal with some aspects of the same industry. Telecommunications is an excellent example of industry with vertical markets. For example, a teleconference provider is a specialized telecommunications provider. The teleconference company will buy bridging equipment from the manufacturer to set up a call work center. In this scenario, the provider and the manufacturer are considered part of the same industry.

On the other hand, a seller on the horizontal market would provide a less specific service that would be interesting for a wider client base. Remote services are an example of a wide horizontal market, as well as text processing software. A wide range of customers can easily use each of these services.

There are a number of examples of the vertical market to be a found in many industries. Health, food services and insurance areAll industries that include a number of vertical market opportunities for the right seller.